- Michigan mayor slaps back atheists’ try to erect ‘reason station’ at city hall
- PHILLIPS: Where is the conservative establishment?
- 7.5-magnitude earthquake shakes southern Mexico
- ISTOOK: IRS “wants to throw us in jail,” says tea party leader
- Easter woes: Chocolate costs soar, becoming ‘unaffordable’ luxury
- Michaels craft chain confirms hackers hit 3M customers
- Special Forces’ suicide rates hit record levels — casualties of ‘hard combat’
- Many Americans would quickly face financial hardship after losing job, poll shows
- Toronto Mayor Rob Ford thanks supporters at re-election campaign bash
- Texas seizes polygamist Warren Jeffs’ 1,600-acre ranch
Report: Apple cutting orders for iPhone 5 parts
NEW YORK (AP) - Apple shares fell in premarket trading Monday after The Wall Street Journal reported that the company has cut its orders for iPhone 5 components due to weaker-than-expected demand.
The newspaper said that two people it did not identify by name told it that Apple’s first quarter orders for iPhone 5 screens have dropped to about half of what the company had previously planned to order.
It said one of the people told the newspaper that the Cupertino, Calif., company has also cut orders for components other than screens. The Journal said it was told Apple notified the suppliers of the order cut last month.
Apple didn’t immediately return an email seeking comment before business hours Monday.
The move is a sign that sales of the new iPhone haven’t been as strong as previously expected and demand may be waning. It comes as the company has been facing increased competition from Samsung Electronics Co. and other makers of smartphones that run Google Inc.’s Android operating system.
South Korea’s Samsung, which sells Android-based models at various price points, has already overtaken the U.S. company as the world’s largest smartphone vendor by market share.
Android devices accounted for 75 percent of smartphone shipments during the three months ending in September, up from 58 percent at the same time in 2011, according to the research firm IDC. The iPhone’s share stood at 15 percent in September, up from 14 percent in the previous year.
Google says more than 500 million Android devices have been activated since the software’s release four years ago. By comparison, Apple had sold about 271 million iPhones through last September.
Last week, the Journal reported that Apple is trying to decide whether it makes sense to offer a cheaper iPhone as it tries to boost sales in less-affluent countries and reclaim some of its lost market share.
Apple Inc. shares dropped $17.45, or 3.4 percent, to $502.85 in premarket trading Monday.
TWT Video Picks
- Harry Reid blasts Bundy ranch supporters as 'domestic terrorists'
- Immigration still on hold: Boehner's office
- Inside China: Marine's comment on islands draws sharp Chinese response
- Supreme Court weighs appeal to concealed-carry gun laws
- PRUDEN: When a bored president just 'mails it in'
- Army goes to war with National Guard, seizes Apache attack helicopters
- With pot and e-cigarettes, Big Tobacco is just waiting to inhale emerging markets
- Hillary swoons at admitted illegal immigrant: 'Wow,' you're 'incredibly brave'
- Jews being told to register in Ukraine: John Kerry
- Prosecutors seek arrest warrant for ferry captain in South Korea
Top 10 handguns in the U.S.